Written by ForexBrokers.com
In this head to head comparison of Interactive Brokers vs FXCM, we will compare the trading platforms, mobile apps, range of investments, costs, market research, and more. Let's dive in.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Interactive Brokers, established in 1977, and FXCM, founded in 1999, are both reputable platforms for online trading. Interactive Brokers is publicly traded and holds nine Tier-1 licenses, which are top indicators of trustworthiness, along with two Tier-2 licenses. It boasts a perfect Trust Score rating of 99 out of 99, suggesting a highly trusted status. In contrast, FXCM, also publicly traded, has four Tier-1 licenses and two Tier-2 licenses, with a strong but slightly lower Trust Score of 95. Neither platform operates as a bank, ensuring they focus solely on brokerage services.
| Feature |
Interactive Brokers
|
FXCM
|
|---|---|---|
| Year Founded | 1977 | 1999 |
| Publicly Traded (Listed) | Yes | Yes |
| Bank | No | No |
| Tier-1 Licenses | 9 | 4 |
| Tier-2 Licenses | 2 | 2 |
| Tier-3 Licenses | 0 | 0 |
| Tier-4 Licenses | 0 | 0 |
When comparing Interactive Brokers and FXCM on commissions and fees, Interactive Brokers emerges as a strong competitor with attractive pricing for forex trading. Despite not publicly releasing its average forex spreads, data from Q3 2024 shows Interactive Brokers offering effective spreads for EUR/USD at 0.59 pips. The broker charges commissions starting at 0.2 basis points per side, with a $2 minimum per order, making it cost-effective for high-volume traders. Active traders benefit further with potential discounts, where fees can drop significantly based on monthly trade volumes. Interactive Brokers delivers value with its star rating of 5 out of 5 and holds a solid #2 ranking in the Commissions and Fees category among 63 brokers.
FXCM, while slightly higher in pricing compared to the industry average, provides several options for traders through various accounts. Standard account spreads for EUR/USD averaged 0.78 pips in early 2024, which is notably higher than ideal. FXCM’s spreads for its commission-based accounts averaged 0.28 pips, but the effective spread is closer to 0.74 pips after accounting for commissions. Active traders can take advantage of discounts via the Active Trader Rebate Program, although these incentives vary by region and volume. Despite offering some savings, FXCM's total cost for traders is less favorable when compared to certain competitors. It holds a 4-star rating and ranks #25 out of 63 brokers for Commissions and Fees.
In summary, Interactive Brokers offers competitive forex trading commissions, particularly for high-volume traders, and boasts a higher ranking than FXCM. While FXCM provides options for active traders to lower their costs, its standard pricing can be less competitive. Both brokers cater to different trading needs, with Interactive Brokers seen as a more cost-efficient choice for those prioritizing lower spreads and commissions.
| Feature |
Interactive Brokers
|
FXCM
|
|---|---|---|
| Minimum Deposit | $0 | Starts from $50 |
| Average Spread EUR/USD - Standard | 0.59 | 0.78 |
| All-in Cost EUR/USD - Active | 0.59 | 0.78 |
| Active Trader or VIP Discounts | Yes | Yes |
| ACH or SEPA Transfers | Yes | Yes |
| PayPal (Deposit/Withdraw) | No | Yes |
| Skrill (Deposit/Withdraw) | No | Yes |
| Visa/Mastercard (Credit/Debit) | No | Yes |
| Bank Wire (Deposit/Withdraw) | Yes | Yes |
Dive deeper: Best Low Spread Forex Brokers.
Interactive Brokers and FXCM both provide forex trading, allowing users to engage in forex contracts either as CFDs or spot. However, Interactive Brokers boasts a significantly larger selection with 8,500 tradeable symbols and 90 forex pairs, compared to FXCM's 440 symbols and 46 forex pairs. When it comes to exchange-traded securities, Interactive Brokers stands out by offering access to U.S. and international markets, enabling clients to purchase shares like Apple and Vodafone directly. Conversely, FXCM does not provide this opportunity, focusing instead on derivatives. Additionally, Interactive Brokers provides the option to buy actual cryptocurrencies, whereas FXCM limits this to crypto derivatives only.
In terms of investment variety, Interactive Brokers receives top accolades, earning a 5-star rating and securing the #1 spot in the Range of Investments category according to ForexBrokers.com. FXCM, while offering unique features like copy trading, scores 3.5 stars and ranks #47 in the same category. This highlights Interactive Brokers' broad and diverse offerings, making it a favorable choice for those seeking comprehensive investment options. In contrast, FXCM may appeal to those interested in a simpler, more focused approach, particularly in CFD trading.
| Feature |
Interactive Brokers
|
FXCM
|
|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes |
| Tradeable Symbols (Total) | 8500 | 440 |
| Forex Pairs (Total) | 90 | 46 |
| U.S. Stock Trading (Non CFD) | Yes | No |
| Int'l Stock Trading (Non CFD) | Yes | No |
| Social Trading / Copy Trading | No | Yes |
| Cryptocurrency (Physical) | Yes | No |
| Cryptocurrency (Derivative) | Yes | Yes |
| Disclaimers | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). |
Dive deeper: Best Copy Trading Platforms.
Interactive Brokers and FXCM both provide excellent trading platforms and tools with a variety of features suitable for different trading styles. Both brokers offer simulated trading with a free virtual demo account, and have developed proprietary trading platforms in-house. Accessible through both Windows desktop download and web-based platforms, Interactive Brokers and FXCM cater to different user preferences. However, while Interactive Brokers supports trading directly from stock charts and offers an impressive 659 watch list columns, FXCM stands out with copy trading options and the popular MetaTrader 4 platform, offering a more social trading experience.
Although neither broker supports MetaTrader 5 or DupliTrade, FXCM provides enhanced social trading opportunities with ZuluTrade. In terms of charting tools, Interactive Brokers leads with 85 drawing tools, compared to FXCM's 10, a noteworthy difference for traders who rely on detailed chart analyses. Both brokers achieve high acclaim for their platforms and tools, each receiving a 5-star rating. When ranked against 63 brokers by ForexBrokers.com, Interactive Brokers is placed at #3 while FXCM follows closely at #6, illustrating a slightly higher user preference for Interactive Brokers' comprehensive tools set.
| Feature |
Interactive Brokers
|
FXCM
|
|---|---|---|
| Virtual Trading (Demo) | Yes | Yes |
| Proprietary Platform | Yes | Yes |
| Desktop Platform (Windows) | Yes | Yes |
| Web Platform | Yes | Yes |
| Social Trading / Copy Trading | No | Yes |
| MetaTrader 4 (MT4) | No | Yes |
| MetaTrader 5 (MT5) | No | No |
| DupliTrade | No | No |
| ZuluTrade | No | Yes |
| Charting - Indicators / Studies (Total) | 155 | 115 |
| Charting - Drawing Tools (Total) | 85 | 10 |
| Charting - Trade From Chart | Yes | Yes |
| Watchlists - Total Fields | 659 | 13 |
Dive deeper: Best MetaTrader 4 Brokers, Best MetaTrader 5 Brokers.
Interactive Brokers and FXCM both offer mobile trading apps for iPhone and Android, catering to users keen on trading on the go. Both platforms allow users to set stock and forex price alerts, create watchlists with real-time quotes, and offer seamless watchlist syncing between the app and online accounts. When it comes to charting tools, Interactive Brokers provides a more extensive suite with 97 technical studies compared to FXCM's 59, yet both allow drawing trendlines and viewing multiple time frames for comprehensive analysis. However, FXCM has the edge in user convenience by auto-saving chart drawings, a feature absent in Interactive Brokers' app.
In terms of user ratings, Interactive Brokers outshines FXCM by receiving a full 5-star rating for its mobile trading app, compared to FXCM's 4.5 stars. Additionally, ForexBrokers.com ranks Interactive Brokers as the 4th best among 63 brokers under the Mobile Trading Apps category, while FXCM holds the 16th spot. This suggests that while both apps offer substantial features for traders, Interactive Brokers is perceived as providing a slightly more superior mobile trading experience.
| Feature |
Interactive Brokers
|
FXCM
|
|---|---|---|
| Android App | Yes | Yes |
| Apple iOS App | Yes | Yes |
| Mobile Alerts - Basic Fields | Yes | Yes |
| Watchlist Syncing | Yes | Yes |
| Mobile Charting - Indicators / Studies | 97 | 59 |
| Mobile Charting - Draw Trendlines | Yes | Yes |
| Mobile Charting - Multiple Time Frames | Yes | Yes |
| Mobile Charting - Drawings Autosave | No | Yes |
| Mobile Watchlist | Yes | Yes |
Dive deeper: Best Forex Trading Apps.
When comparing Interactive Brokers and FXCM in terms of market research offerings, both platforms provide daily market commentary and access to forex news from esteemed sources such as Bloomberg and Reuters, ensuring traders stay informed with the latest updates. Additionally, both brokers offer technical analysis tools from Trading Central, as well as sentiment-based trading tools that display the ratio of long and short positions on various instruments. They also each include an economic calendar to track global news events, essential for traders who want to align their strategies with market movements. However, a difference arises with research tools from Acuity Trading, where Interactive Brokers holds an advantage, offering access to features like Signal Centre, which is not available with FXCM.
Evaluating their research quality, Interactive Brokers receives a stellar rating of 5 stars, marking it as a top choice for in-depth market analysis. It ranks impressively as the third broker out of 63 for research on ForexBrokers.com. On the other hand, FXCM offers reliable market insights with a notable rating of 4.5 stars, securing the 11th position for research in the same review. This distinction highlights Interactive Brokers’ slightly superior standing in research offerings, making it a preferred option for traders who prioritize state-of-the-art research features and comprehensive market analysis.
| Feature |
Interactive Brokers
|
FXCM
|
|---|---|---|
| Daily Market Commentary | Yes | Yes |
| Forex News (Top-Tier Sources) | Yes | Yes |
| Autochartist | No | No |
| Trading Central (Recognia) | Yes | Yes |
| Social Sentiment - Currency Pairs | Yes | Yes |
| TipRanks | Yes | Yes |
| Signal Centre (Acuity Trading) | Yes | No |
| Economic Calendar | Yes | Yes |
Dive deeper: Best Brokers for Forex Research.
When comparing the educational resources offered by Interactive Brokers and FXCM for beginners, both online brokers emerge as strong contenders, offering a wide variety of learning materials. Interactive Brokers and FXCM each provide over 10 educational pieces focused on forex and CFDs, catering to those eager to learn. They both host monthly webinars and maintain archives of past sessions, making it easy for beginners to catch up or review material. Additionally, each broker supports beginners with at least 10 targeted educational videos, simplifying complex trading topics.
Furthermore, both Interactive Brokers and FXCM extend their resources with over 10 advanced videos for more experienced traders, along with investor dictionaries containing definitions of at least 50 investing terms to help broaden your financial vocabulary. Despite these similarities, Interactive Brokers stands out with a 5-star rating in education compared to FXCM's 4.5 stars. Ranked 3rd out of 63 brokers by ForexBrokers.com in the education category, Interactive Brokers leads over FXCM, which holds the 14th place.
| Feature |
Interactive Brokers
|
FXCM
|
|---|---|---|
| Education (Forex or CFDs) | Yes | Yes |
| Client Webinars | Yes | Yes |
| Client Webinars (Archived) | Yes | Yes |
| Videos - Beginner Trading Videos | Yes | Yes |
| Videos - Advanced Trading Videos | Yes | Yes |
| Investor Dictionary (Glossary) | Yes | Yes |
Dive deeper: Best Forex Brokers for Beginners.
After testing 63 of the best forex brokers, our research and account testing finds that Interactive Brokers is better than FXCM. Interactive Brokers finished with an overall rank of #2, while FXCM finished with an overall rank of #15.
Interactive Brokers is a highly trusted multi-asset broker with an extensive offering of tradeable global markets. It delivers competitive fees and high-quality research and education, as well as a modern, institutional-grade trading platform suite.
| Feature |
Interactive Brokers
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FXCM
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|---|---|---|
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| Trust Score | 99 | 95 |
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Interactive Brokers allows users to buy actual delivered cryptocurrency and cryptocurrency derivatives, whereas FXCM offers only the ability to trade cryptocurrency derivatives, not actual delivered cryptocurrencies.
Interactive Brokers and FXCM both support ACH and SEPA transfers as well as bank wires for account funding and withdrawal; however, unlike Interactive Brokers, FXCM also supports PayPal, Skrill, and Visa or Mastercard, offering more diverse payment options.
Please note:
We review each broker’s overall global offering – a “Yes” checkmark in our Compare Tool does not guarantee the availability of any specific features in your country of residence. To verify the availability of any features within your country of residence, please contact the broker directly.
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0 of 5| Overall Rating | Interactive Brokers | FXCM | |
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| Trust Score | 99 | 95 | |
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| Review | Interactive Brokers Review | FXCM Review |
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| Regulation | Interactive Brokers | FXCM | |
|---|---|---|---|
| Trust Score | 99 | 95 | |
| Year Founded | 1977 | 1999 | |
| Publicly Traded (Listed) | Yes | Yes | |
| Bank | No | No | |
| Regulated in one or more EU or EEA countries (MiFID). | Yes | Yes | |
| Tier-1 Licenses | 9 | 4 | |
| Tier-2 Licenses | 2 | 2 | |
| Tier-3 Licenses | 0 | 0 | |
| Tier-4 Licenses | 0 | 0 |
| Tier-1 Licenses (Highly Trusted) | Interactive Brokers | FXCM | |
|---|---|---|---|
| Australia (ASIC Authorised) | Yes | Yes | |
| Canada (CIRO Authorised) | Yes | Yes | |
| Hong Kong (SFC Authorised) | Yes | No | |
| Japan (SFC Authorised) | Yes | No | |
| Singapore (MAS Authorised) | Yes | No | |
| Switzerland (FINMA Authorised) | Yes | No | |
| United Kingdom (U.K.) (FCA Authorised) | Yes | Yes | |
| USA (CFTC Authorized) | Yes | No | |
| New Zealand (FMA Authorised) | No | No | |
| Regulated in one or more EU or EEA countries (MiFID). | Yes | Yes |
| Tier-2 Licenses (Trusted) | Interactive Brokers | FXCM | |
|---|---|---|---|
| Kenya (CMA Authorised) | No | No | |
| Israel (ISA Authorised) | No | Yes | |
| South Africa (FSCA Authorised) | No | Yes | |
| UAE (DFSA/Central Bank Authorised) | Yes | No | |
| India (SEBI Authorised) | Yes | No | |
| Jordan (JSC Authorised) | No | No |
| Investments | Interactive Brokers | FXCM | |
|---|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes | |
| Tradeable Symbols (Total) | 8500 | 440 | |
| Forex Pairs (Total) | 90 | 46 | |
| U.S. Stock Trading (Non CFD) | Yes | No | |
| Int'l Stock Trading (Non CFD) | Yes | No | |
| Social Trading / Copy Trading | No | Yes | |
| Cryptocurrency (Physical) | Yes | No | |
| Cryptocurrency (Derivative) | Yes | Yes | |
| Disclaimers | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). |
| Cost | Interactive Brokers | FXCM | |
|---|---|---|---|
| Average Spread EUR/USD - Standard | 0.59 | 0.78 | |
| All-in Cost EUR/USD - Active | 0.59 | 0.78 | |
| Active Trader or VIP Discounts | Yes | Yes | |
| Inactivity Fee | No | Yes | |
| Execution: Agency Broker | Yes | Yes | |
| Execution: Market Maker | No | Yes |
| Funding | Interactive Brokers | FXCM | |
|---|---|---|---|
| Minimum Deposit | $0 | Starts from $50 | |
| PayPal (Deposit/Withdraw) | No | Yes | |
| Skrill (Deposit/Withdraw) | No | Yes | |
| Visa/Mastercard (Credit/Debit) | No | Yes | |
| Bank Wire (Deposit/Withdraw) | Yes | Yes | |
| ACH or SEPA Transfers | Yes | Yes |
| Trading Platforms | Interactive Brokers | FXCM | |
|---|---|---|---|
| Proprietary Platform | Yes | Yes | |
| Desktop Platform (Windows) | Yes | Yes | |
| Web Platform | Yes | Yes | |
| Social Trading / Copy Trading | No | Yes | |
| MetaTrader 4 (MT4) | No | Yes | |
| MetaTrader 5 (MT5) | No | No | |
| cTrader | No | No | |
| DupliTrade | No | No | |
| ZuluTrade | No | Yes |
| Trading Tools | Interactive Brokers | FXCM | |
|---|---|---|---|
| Virtual Trading (Demo) | Yes | Yes | |
| Alerts - Basic Fields | Yes | Yes | |
| Watchlists - Total Fields | 659 | 13 | |
| Charting - Indicators / Studies (Total) | 155 | 115 | |
| Charting - Drawing Tools (Total) | 85 | 10 | |
| Charting - Trade From Chart | Yes | Yes | |
| Charts can be saved | Yes | Yes |
| Mobile Trading | Interactive Brokers | FXCM | |
|---|---|---|---|
| Android App | Yes | Yes | |
| Apple iOS App | Yes | Yes | |
| Mobile Alerts - Basic Fields | Yes | Yes | |
| Mobile Watchlist | Yes | Yes | |
| Watchlist Syncing | Yes | Yes | |
| Mobile Charting - Indicators / Studies | 97 | 59 | |
| Mobile Charting - Draw Trendlines | Yes | Yes | |
| Mobile Charting - Multiple Time Frames | Yes | Yes | |
| Mobile Charting - Drawings Autosave | No | Yes | |
| Mobile Economic Calendar | Yes | Yes |
| Research | Interactive Brokers | FXCM | |
|---|---|---|---|
| Daily Market Commentary | Yes | Yes | |
| Forex News (Top-Tier Sources) | Yes | Yes | |
| Autochartist | No | No | |
| Trading Central (Recognia) | Yes | Yes | |
| TipRanks | Yes | Yes | |
| Social Sentiment - Currency Pairs | Yes | Yes | |
| Economic Calendar | Yes | Yes |
| Education | Interactive Brokers | FXCM | |
|---|---|---|---|
| Education (Forex or CFDs) | Yes | Yes | |
| Client Webinars | Yes | Yes | |
| Client Webinars (Archived) | Yes | Yes | |
| Videos - Beginner Trading Videos | Yes | Yes | |
| Videos - Advanced Trading Videos | Yes | Yes | |
| Investor Dictionary (Glossary) | Yes | Yes |
| Major Forex Pairs | Interactive Brokers | FXCM | |
|---|---|---|---|
| GBP/USD | Yes | Yes | |
| USD/JPY | Yes | Yes | |
| EUR/USD | Yes | Yes | |
| USD/CHF | Yes | Yes | |
| USD/CAD | Yes | Yes | |
| NZD/USD | Yes | Yes | |
| AUD/USD | Yes | Yes | |
| Review | Interactive Brokers Review | FXCM Review |
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| Trust Score | 99 | 95 | |
| Winner | check_circle | ||
| Review | Interactive Brokers Review | FXCM Review |
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